The Money Game Wed 2010-06-09 18:11 EDT

How Deficit Hawks Will Keep Cutting Spending Until We're All On Food Stamps

Marshall Auerback

...Sovereign debt is not a problem as long as the nation's debt contracts is denominated in the nation's currency -- and the nation has control over its own currency (in contrast to the euro zone). The Greek problem is the equivalent of the California problem, where California does not print its own currency...Apparently, we do not yet have the guts to shift from the neo-classical orthodoxy. Chicago school economics is still too much our religion. It persists until we all go on food stamps. The country that detests ideology is too ideological to manage any kind of serious change prior to crisis. As a result, a new crisis is almost certain to come, which will force the change that our elites still refuse to contemplate.

deficit hawk; food stamps; Keep Cutting Spending; Money game.

Tue 2010-04-20 10:05 EDT

The Search for a Reserve Currency

Gregory R. Copley

...good governance as an essential component of currency value and the trust in that currency can transform overnight, just as we witnessed the post-World War II collapse of sterling, and, now, the shakiness of trust in the US dollar (despite the reality that, at $14.2-trillion in value in 2008, is the world's largest). The age of the US dollar as the global reserve currency isn't yet over, but it's threatened, and the trend toward a flight from the dollar (despite occasional returns to it) is evident. At present, however, the dollar is shored up because in many respects there's nothing of its stature ready to replace it...major trade will gradually become more bilateral in nature, based on very real mutual trust in each other's currencies or goods. This will be a significant limiting factor in trade, and will make bilateral balances of greater interest than in the past when trade balances of a bilateral nature ``washed out'' in the great mixing bowl of the global banking system...

reserve currency; search.

Credit Writedowns Fri 2009-10-23 08:57 EDT

US angling to get Chinese to revalue renminbi

In what looks to be a central line of attack in the quest to re-balance the global economy, the Treasury Department has ratcheted up the rhetoric against China's currency peg. The Treasury's semiannual report to Congress slammed the Chinese for their lack of exchange rate `flexibility,' but stopped well short of accusing the Chinese of currency 'manipulation' as Tim Geithner had claimed...[dollar losing reserve currency status]

angle; Chinese; credit writedowns; revalue renminbi.

Credit Writedowns Wed 2009-10-14 12:12 EDT

Currencies pegged to the dollar under pressure to drop peg

...as the dollar continues to weaken, those countries with pegs will be under pressure to drop their peg or to revalue their pegs higher. The Bloomberg video linked below explains. The dichotomy whereby the adjustment process is done only through free-floating currencies is inherently unstable -- and invites a nationalistic response. A busted peg in any major U.S. trading partner's currency is likely to have a very negative psychological impact on currency markets and severe knock-on effects... [dollar losing reserve status]

credit writedowns; currency pegs; Dollar; drop peg; pressures.

Tue 2009-09-29 11:14 EDT

Take This Monetary System, Please - Up and Down Wall Street Daily - Barrons.com

RANDALL W. FORSYTH

The current exchange-rate regime can't go on, but what's the alternative?...As long as China's currency remains joined at the hip to the dollar, the impact of the dollar's weakness ironically is felt more outside the U.S. than within its borders. And to keep that exchange rate stable requires China to continue to accumulate U.S. assets, notwithstanding that nation's vocal complaints about American deficits that it is compelled to fund. [reserve currency]

Barrons; com; monetary System; please; take; Wall Street Daily.

Tue 2009-09-22 08:39 EDT

HSBC bids farewell to dollar supremacy - Telegraph

Ambrose Evans-Pritchard

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC..."The dollar looks awfully like sterling after the First World War," said David Bloom, the bank's currency chief.

dollar supremacy; HSBC bids farewell; Telegraph.

Tue 2009-06-16 00:00 EDT

A 'Copper Standard' for the world's currency system? - Telegraph

by Ambrose Evans-Pritchard; Beijing is trying to extricate itself from dollar dependency as fast as it can; dollar losing reserve status

Copper Standard; Telegraph; world's currency system.

Mon 2008-01-07 00:00 EST

Money Matters: Mexican Truckers Still Allowed Into US

by Elaine Meinel Supkis; "All the world's currencies are 'misaligned' because monetarism is the new tool for DESTROYING OTHER NATION'S INDUSTRIAL POWERS!"

allowed; Mexican truckers; money matters.